9 Benefits of Transitional Duty

Construction Safety

Establishing an effective transitional duty (i.e. early return to work program) is vital to controlling workers’ compensation claim costs. Such programs have been proven to significantly reduce the indemnity payments in an employer’s claim experience. Here’s how:

The employee must report to work rather than relax in the comfortable surroundings of their home environment

Communication between the employer and employee is enhanced, face-to-face.

When an employer brings the insured employee back on restricted duty, there are many positive benefits to not only the employer but also the employee, including:

The injured worker avoids being isolated

The employee maintains contact with the fellow employees

The employee does not feel guilty and increases his/her level of self esteem

The employee acclimates more quickly to the full duty job

He/she maintains a productive mindset and sees management’s commitment to their well-being

For many employers, the problem with offering restricted duty is that the job being offered warrants significantly less money than the job being replaced. Hence, the employer does not want to pay the employee 100% of the pre-injured (full duty wage). What many employers fail to realize is that by providing restricted duty, they do not legally need to pay 100% of the full duty benefits. The workers’ compensation insurance carrier will split the difference. Here’s an example:

Average weekly wage of $900 (temporary total disability benefit would be $600 per week)

If the injured worker returns to 40 work hours per week yet only earns $480 per week due to the difference in job duties, the temporary partial disability benefit paid by the workers’ compensation carrier would be $280 per week; 50% of the $420 difference.

The incorporation of restricted duty helps define your employment culture. Employees understand that no matter the injury, there’s a job waiting for them in the business.

Mike McGuire is a Principal at Assurance bringing nearly 30 years of insurance experience. He works with a large clientele base of middle market-sized businesses in the construction industry, and has experienced tremendous success in reducing and controlling costs associated with risk. Mike received his Bachelor of Arts degree in American Studies from the University of Notre Dame and his Master’s degree in Business Administration from Loyola University. He's also obtained his Associate in Risk Management (ARM) designation and is licensed in both Property & Casualty insurance and Life & Health.

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